Policy and tax rate Changes recommended by the 25th GST Council Meeting

The Union Finance Minister Arun Jaitley Chaired the 25^th Meeting of the GST Council in New Delhi today. The following Policy Changes have been recommended by the GST Council in its 25^th meeting held today:

1. The late fee payable by any registered person for failure to furnish FORM GSTR-1 (supply details), FORM GSTR-5 (Non-resident taxable person) or FORM GSTR-5A (OIDAR) is being reduced to fifty rupees per day and shall be twenty rupees per day for NIL filers. The late fee payable for failure to furnish FORM GSTR-6 (Input Service Distributor) shall be fifty rupees per day.
2. Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.
3. For migrated taxpayers, the last date for filing FORM GST REG-29 for cancellation of registration is being extended by further three months till 31^st March, 2018.
4. The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in. Once fully operational, the e-way bill system will start functioning on the portal ewaybillgst.gov.in
5. Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date to be announced separately by each State but not later than 01.06.2018.
6. The report and recommendations submitted by the Committee on Handicrafts were also accepted by the GST Council.

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	87	Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
2.	8702	Buses, for use in public transport, which exclusively run on bio-fuels.

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
	87	All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	1704	Sugar boiled confectionary
2.	2201	Drinking water packed in 20 litters bottles
3.	2809	Fertilizer grade Phosphoric acid
4.	29 or 38	Bio-diesel
5	38	The following Bio-pesticides, –   S. No. Name of the bio pesticide 1 Bacillus thuringiensis var. israelensis 2 Bacillus thuringiensis var. kurstaki 3 Bacillus thuringiensis var. galleriae 4 Bacillus sphaericus 5 Trichoderma viride 6 Trichoderma harzianum 7 Pseudomonas fluoresens 8 Beauveriabassiana 9 NPV of Helicoverpaarmigera 10 NPV of Spodopteralitura 11 Neem based pesticides 12 Cymbopogan
6.	4418	Bamboo wood building joinery
7.	8424	Drip irrigation system including laterals, sprinklers
8.	8424	Mechanical Sprayer

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	13	Tamarind Kernel Powder
2.	1404/3305	Mehendi paste in cones
3.	2711	LPG supplied for supply to household domestic consumers by private LPG distributors
4.	88 or any other chapter	Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	4601, 4602	Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

 

1. F.      LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	5601 22 00	Cigarette filter rods

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	5801 37 20	Velvet fabric

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

 

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	7102	Diamonds and precious stones

 

1. NIL GST RATE:

 

1. Vibhuti
2. Parts and accessories for manufacture of hearing aids.
3. De-oiled rice bran

 

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

 

S. No.	Chapter/Heading/Sub-heading/Tariff item	Description
1.	2302	Rice bran (other than de-oiled rice bran)

 

 

1.        CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

 

S. No	Chapter/ Heading/ Sub-heading/ Tariff item	Description	Present Compensation Cess Rate	Compensation Cess Rate Recommended
	8702	Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions.	15%	Nil
	87	Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.	Applicable rate	Nil
	87	All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.	Applicable rate	Nil

 

1. CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

 

S. No	Chapter/ Heading/ Sub-heading/ Tariff item	Description	Present IGST Rate	IGST Rate Recommended
	88or any other chapter	Satellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads	18%	5%

 

1. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

 

 

S. No	Chapter/ Heading/ Sub-heading/ Tariff item	Description	Present GST Rate	Modification/clarification Recommended
	27	Poly Butylene Feed Stock & Liquefied Petroleum Gas	18%	The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
	Any chapter	Rail coach industry	Applicable GST rate	Only the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
	2701	Coal rejects	5% + Rs. 400 PMT Compensation Cess	Coal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess.

 

It is proposed to issue notification giving effect to the recommendations of the Council on 25^th January, 2018 to be effective from 00 HRS on 25^th January, 2018